What's Happening?
The U.S. hotel industry experienced a notable increase in revenue per available room (RevPAR) for the week ending October 11, 2025, marking the first positive change since the end of August. This growth was driven by a 2.6% rise in the average daily rate
(ADR), which matched the rate of inflation. Despite a 16-week decline in occupancy, the recent drop was less severe than previous weeks. The Top 25 Markets saw a 2.8% increase in ADR, with significant contributions from cities like Atlanta, Boston, New York, San Francisco, and Tampa. The weekend was particularly strong, with a 5.0% increase in RevPAR, aided by college football events and the start of the fall break for many students.
Why It's Important?
The increase in RevPAR is a positive sign for the U.S. hotel industry, indicating a potential recovery from the prolonged period of declining occupancy. The growth in ADR suggests that hotels are managing to maintain pricing power despite lower occupancy rates. This development is crucial for the financial health of the hospitality sector, which has been struggling with the impacts of reduced travel and events. The strong performance in major markets and during weekends highlights the importance of group demand and special events in driving hotel revenues. The industry's ability to sustain this growth could have broader economic implications, supporting jobs and related businesses.
What's Next?
Looking ahead, the sustainability of ADR growth remains uncertain, especially with ongoing occupancy challenges. However, the favorable calendar and strong group demand in major markets could continue to support ADR increases. The industry's performance in the coming weeks will be closely watched to determine if this positive trend can be maintained. Stakeholders, including hotel operators and investors, will be monitoring these developments to adjust their strategies accordingly.
